Morning Bid: Optimism over peaking rates propels stocks. From Kevin Buckland, here’s a look at what the day holds for markets worldwide and in Europe. The European stock market is poised to get off to a positive start if it follows the example of the Asia-Pacific region. This is because bond rates have decreased as investors become more confident that the tightening cycle of the leading central banks has reached its zenith.

As investors re-entered the market after the Nikkei share average (.N225) dropped to a three-week low in the previous session, the Nikkei share average (.N225) experienced a notable increase of 1.8%. Heavyweight leaders in the semiconductor business, Tokyo Electron (8035.T) and Advantest (6857.T), were two of the top three companies that moved the most points.

As a result of a 1.2% increase in its technology subindex (.HSTECH), the Hang Seng (.HSI) in Hong Kong recovered from an early instability. After falling to a level not seen in over five years at the beginning of the trading session, an index of mainland blue chips (CSI300) recovered slightly. This was in response to persistent concerns about Moody’s downgrade warning for China’s credit rating.

The Australian stock benchmark (.AXJO) continued to ride the feel-good factor of the Reserve Bank of Australia’s decision to postpone rate hikes, which increased its price by 1.6%.

As a result of recent dovishness on the part of the Federal Reserve and an interview that took place on Tuesday with Isabel Schnabel, a policymaker at the European Central Bank, in which she stated to Reuters that more tightening is “rather unlikely,” there is a growing perception that the major central banks have finished raising interest rates. Later in the day, it is anticipated that the Bank of Canada will decide to “hold” interest rates, which will add to the story.

The rates on benchmark government bonds have experienced a steep decline, reaching multi-month lows in Japan, as they continued to follow the downward trend in yields on U.S. Treasury bonds overnight.

Even though the economy of the United States is unquestionably slowing down, there are still indications that a gentle landing is likely to occur. The labor market is the primary focus for the week, and the ADP employment report will be released later in the day, which will prepare for the monthly payroll data released on Friday.

The most important economies in Europe are also expected to release their macroeconomic statistics shortly. Germany is expected to disclose industrial orders, the United Kingdom will release purchasing manager surveys, and the euro area will publish retail sales numbers.

The following vital developments may influence Wednesday’s market activity:

Orders for industrial production in Germany (October)

PMI for the entire U.K. (November)

The report on the financial soundness of the Bank of England

Retail sales in the Euro region in October

ADP employment in the United States (November)

Rate decision made by the Bank of Canada